Prudential Financial reported a third quarter earnings beat, with results supported by robust performance in U.S. businesses and record retail annuity sales. Adjusted operating income surpassed analyst expectations despite a significant 25% drop in Japan segment earnings following a voluntary sales suspension. While PGIM's total assets under management slightly declined, the segment achieved its highest third-party net inflows in ten quarters, primarily driven by strong demand for public credit assets.
Key Highlights
- After-tax adjusted operating income reached $3.77 per share, comfortably beating the $3.32 analyst estimate.
- Japan segment income fell to $559 million from $750 million in the prior-year period as constant-dollar sales plummeted 36% due to the Prudential of Japan sales suspension.
- U.S. Businesses delivered $1.17 billion in operating income, highlighted by retail annuity sales reaching their highest quarterly level since 2013.
- PGIM reported third-party net inflows of $9.0 billion, with positive contributions from both institutional and retail clients, offsetting affiliated net outflows of $1.6 billion.